Holger Zschäpitz is senior editor of the financial desk and market maniac at @Welt and Author of 'Schulden ohne Sühne?' a book on states' addictiveness to debt.
Good Morning from #Germany where inflationary pressure keeps rising as markets no longer see #inflation as a transitory phenomenon, but as something more permanent. German 10y breakeven rate rose to 1.87%, the highest level since Feb2013.
This chart shows the relationship between producer & consumer price #inflation in #Germany . In the 1990s, consumer prices were higher than producer prices, but since then this has alternated. In Sep, producer prices are 3.5 times higher than consumer prices. On avg, factor is 0.3
Some Strategists See Bitcoin at $100,000 by Year’s End.
Latest meme stock in town: Trump-Tied SPAC ignites retail frenzy amid 1,225% surge. SPAC volatility has triggered at least six trading halts. Stock remains most bough asset on Fidelity’s retail platform.
WHAT? S&P revises #Italy credit outlook to positive from stable despite the fact that the debt ratio has risen to >150%. Credit rating was affirmed at BBB, the 2nd-lowest investment-grade score.
S&P expects strong investment-led recovery in 2021 and 2022, Putting#Italy 's GDP above 2019 levels 1yr earlier than S&P expected. For 2021, real GDP growth is set to recover by 6%, followed by 4.4% in 2022 as 1st tranche of an expected 10.8% of GDP in EU Funds already disbursed.
S&P: After Germany, #Italy is the most open economy in the G-7, with exports totaling 32% of Italian GDP. Italy remains the seventh-largest exporter in the world and is a diversified and wealthy economy, w/no single export category exceeding 4.5% of the total.
S&P projects that #Italy 's govt deficit will narrow to 8.8% of GDP in 2021 vs the official 9.4% target, and a deficit of 9.6% in 2020. Believes the deficit will narrow to 5.8% of GDP during 2022 as extraordinary COVID-19-related expenditure expires.
Good morning from #Germany , where the stock market continues to lag the global markets. Germany's Dax index has gained just 13% ytd compared to 27% for the S&P500 or 20% for Italy's FTSE MIB. German mkt cap has shrunk to 2.3% of global mkt cap. That is almost an all-time low.
OOPS! German Producer Price Inflation highest in nearly 50yrs. Producer price inflation rose to 14.2% in Sep, up from 12% in August. This was the highest annual rate since Oct1974, w/prices for gas rising 58.9% and prices for electricity supply by 23.0% from a year earlier.
The Reddit army has destroyed $3.7tn in global mkt cap this week, equal to the GDP of #Germany , as the Hedge Fund short squeeze creates contagion. Hedge Fund had to sell their long positions to fund their losses from short activities.
#Turkey Lira in free fall. Now world's worst currency in 2020 w/ -30.2% YTD.
US Treasury Sec Yellen says Treasury to run out of cash around Oct. 18 if debt limit isn't raised.
#Bitcoin futures premium has more than tripled this month ahead of SEC's potential approval of an #ETF next week.
Buffett indicator sounds the alarm. Global stock mkt cap has now topped 120% of global GDP, and thus the same level as before the crash in 2008.
Good morning from #Germany , where more and more banks charging penalty interest rates on checking accounts from their customers. More than 500 banks now have passed on negative #ECB rates to their clients. So investors have toxic mix of negative interest rates and high inflation.
OUCH! America’s middle class now holds a smaller share of US wealth than the top 1%. Middle-class financial security has eroded in past decades, saw their combined assets drop to 26.6% of national wealth while Top 1%’s wealth jumped to record 27% of total.
#BlackRock is eating the world. World's biggest asset manager saw net inflows of $75.31bn in volatile Q3 but assets stall shy of $10tn.